Axis Bank on Wednesday reported a net profit of Rs 1,682.67 crore in the July-September period, as its asset quality improved. The profit came despite higher provisioning for contingencies. Axis Bank – the country’s third largest private sector lender by market value – had posted a net loss of Rs 112.08 crore in the corresponding period a year ago. In a regulatory filing after market hours, Axis Bank said its net interest income – or the difference between interest earned and interest expended – increased 20 per cent to Rs 7,326.07 crore. (Track Axis Bank stock price here)
Its net interest margin – a key measure of profitability – improved to 3.58 per cent in the second quarter of current financial year, from 3.51 per cent in the year-ago period.
Mumbai-based Axis Bank’s asset quality saw a slight improvement with gross non-performing assets (NPAs) as a percentage of total advances at 4.18 per cent in the three-month period ended September 30, as against 4.72 per cent in the previous quarter.
Total gross NPAs – or bad loans – came down to Rs 26,831.64 crore in the July-September period, from Rs 29,560 crore in the quarter ended June 30.
Net NPAs as a percentage of total advances stood at 0.98 per cent, as against 1.23 per cent in the June quarter.
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Axis Bank shares ended 0.71 per cent lower at Rs 504.85 apiece on the BSE ahead of the earnings announcement, as against a 1.48 per cent fall in the benchmark S&P BSE Sensex index amid a broad-based selloff.